How Do You Calculate EPS Growth Rates Using Excel?
Earnings per share (EPS) growth is an important factor to investors. EPS is the ratio of a company’s profits to an average of its common shares. EPS growth shows how well or badly a company is performing over long periods of time, providing investors with a broad sense of the company’s financial history and an idea of how successful it might be in the future. Microsoft Excel offers simple tools that help investors calculate EPS growth rates over an extended period, with perfect accuracy. The program also allows you to easy manipulate data to fit investor needs, and to put that data into a clean and easily accessible format for research and presentation. Find historical data on the stock at a free site like MSN Money Central. Near the top of the page, enter the company name or stock-market symbol into the box and click “Get Quote.” (Our example uses Microsoft, or MSFT.) Find the stock’s EPS data. Click on “Financial Results.” On the next page, click “Statements.” On the resulting page,
